Comments on: Steps to Take Right Now to Maximize Biden Loan Forgiveness

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Fri, 07 Oct 2022 14:02:37 +0000

In reply to Art Payne. It depends on the loan Art. If it was a federal loan, it is eligible for discharge. If it was a private loan that you cosigned, it will depend on the terms of that loan.

By: Art Payne

Art Payne — Thu, 06 Oct 2022 12:53:20 +0000

I obtained a student loan for my daughter and she has passed recently. Will this qualify for forgivness?

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Thu, 22 Sep 2022 20:16:24 +0000

In reply to sharon d kerr.

It will impact your repayment plan eligibility, so you can qualify for repayment plans with lower monthly bills… but this does mean that it takes longer to payoff the debt.

However, as with all federal loans, you can always pay extra if you want to eliminate the debt faster.

By: sharon d kerr

sharon d kerr — Wed, 21 Sep 2022 21:03:40 +0000

so if you consolidate your FFel loan from private to direct student loan does your loan and time payoff increases from what is is now . If so what is the real deal in doing it

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Wed, 31 Aug 2022 21:10:28 +0000

In reply to Mike.

Hi Mike,

With all federal loans, you are allowed to pay off the debt without any penalty (this holds true for private student loans as well). The monthly student loan bill that you will receive is the minimum due. You can always pay more to eliminate the debt faster. In fact, this is a great way to reduce spending on interest over the life of the loan.

However, if you are pursuing PSLF, it makes sense to find the plan with the lowest monthly payment and pay the minimum until the loan is forgiven.

Obviously, the two approaches I’ve just described are opposites. I’d encourage you to run the numbers with both strategies to see what might work best for your debt.

By: Mike

Mike — Wed, 31 Aug 2022 14:13:49 +0000

I have two direct loans and FFEL loan. To qualify for the PSLF, I would need to consolidate my loans. My hesitation with consolidating my loans is being required to stick to the length of the term. Can I payoff my loans ahead of the loan term without penalty?

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Mon, 29 Aug 2022 18:54:58 +0000

In reply to Paul Mammoser. Paul, You could potentially qualify for PSLF for your Parent PLUS debt. However, the Parent PLUS loan itself is not eligible for PSLF. It must first be consolidated into a federal direct loan. Depending on how long you have been repaying the loan. IDR forgiveness might be a better option. This is something you can discuss with your servicer.

By: Paul Mammoser

Paul Mammoser — Mon, 29 Aug 2022 01:56:26 +0000

Hi Mike,
I have a parent plus loan taken out for 2 sons. I am a public school teacher for over 30 years. From a recent reply I read from you, I think you stated that loan forgiveness is for the borrower in public service not my sons that the loans were for. Is that correct? Can I get the loan forgiveness for my years of public service?
Paul

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Sat, 27 Aug 2022 17:58:04 +0000

In reply to Nate. It's a tricky situation. I think the Department of Education should issue more details on the forgiveness soon. Hopefully that will clarify your situation.

By: Nate

Nate — Sat, 27 Aug 2022 02:28:26 +0000

In reply to Michael P. Lux, Esq.. Advice on a similar fact pattern? I have 2 FFELP $9700 privately owned via Navient. I didn’t know they could be consolidated and Navient didn’t bother alerting me to this no-brainer when I asked for and granted a short forbearance during 2021. Now it’s either wait to see if pvt held FFELP will be forgiven OR consolidate to direct loan in which they may deny forgiveness because of a post June’22 ‘disbursement’ despite these loans being 20 yrs old. If both choices in this fact pattern disqualifies my loans from forgiveness, I’d join with others to pursue Navient for unethical practices. Not too dissimilar from behaviors underlying their $1.7B settlement in Jan ‘22